A: Overview of SCM
1. Basic SC
Entities
Supplier
Producer
Customer
Flows
Information
Product
Cash
Reverse
2. Key SCM Process
Definition
Supply chain
Value chain
Value stream
Value stream mapping
SCM
SCOR model
Plan
Source
Make
Deliver
Return
SCOR V10.0
Al customer interactions
All product transactions
All market interactions
3. Evolution of SCM
Integration types
Vertical
Lateral (horizontal)
Keiretsu
Stages
Stage 1: Multiple dysfunction
Stage 2: Semifunctional
Stage 3: Integrated
Stage 4: Expended
4. Create Value
Supply Chain Value
Financial value
Customer value
Social value
5. Globalization impact
Opportunities
New market
New resources and supplier
New labor pools
Challenges
Delivered cost
Logistics automation
End-to-end visibility
Supplier portals and advance notice
Total id and regulatory compliance
Transportation flexibility
Integrated workflows
Integrated planning and execution
Financial SCM
B: SCM Strategy
1. Corporate Strategy
Strategy
Customer focus and alignment
Forecast-driven enterprise
Demand-driven enterprise
Number of supply chain
Levels of communication
Level 1: Transactional
Level 2: Share processes and partnership
Level 3: Strategic alliance
Level 4: Backward integration
2. Aligning
Strategy planning
Organizational design
Processes
Systems and technology
People
Metrics
Changing strategy
Change in market
Change in business direction
Anticipated change in market
Using ERP to Align Operation
3. Competitive Priorities and Future Direction
Competitive priorities
Differentiation
Niche marketing
Low price
Responsiveness
5V
Visibility
Velocity
Variability
Variety
Volume
4. SC Risk Management
Risk profile
Risk Level
Risk acceptance
Risk avoidance
Risk-tolerant
Risk-averse
Risk prevention
Assessing risk
Balancing risk management and cost
Preparing for disruption
Sharing risks
Guidelines
Formal constructs
Holistic
Emphasize symptoms over scenarios
Best practices
Formal risk management
Visibility and quantification of risk
Coordinated risk management
SC designed for risk
C: Managing SC
1. Set priorities and Make Decisions
Customers and market
Technology
Process
Make-or-buy
2. Elements
Network planning
Inventory control
Supply contracts
Outsourcing and procurement strategies
Product design
Customer value
IT and decision support systems
3. Performance Metrics
KPIs
Product introduction
Internal failure rate
External failure rate
Introduction lead time
Merchandizing products
Market share
Volume growth
Total SC inventory turns
Replenishment
Order fill rate
On-time delivery
Order fulfillment lead time
BSC
Perspectives
Financial
Customer
Process
Employee
Key elements
Communicate
Develop goals and measures consistent
Create schedules and assign responsibilities
Level 1 SCOR metrics
Reliability
Perfect order fulfillment
Responsiveness
Order fulfillment cycle time
Agility
Upside flexibility
Upside adaptability
Downside adaptability
VAR
Cost
SCMC
COGS
Asset management
Cash-to-cash cycle time
Return on SC fixed assets
Return on working capital
4. Financial Performance
B/S
Asset
Liabilities and Equity
I/S
Gross profit
Operating income (loss)
Net Income
Tax issue
5. Management and Leading People
6. KSF
Right organization
Right process
Right people
Right technology
Right measures
7. Security and Compliance issues
C-TPAT
Financial reporting
SOX
Section 401
Section 404
Sustainability
Material content reporting
Independent "green" initiatives
FDA
Packaging
D: Improving SC
1. Continuous Improvement
Continuous improvement
Process
Never-ending
Root causes
Small-step improvement
Model
Stage 1: Process analysis
Stage 2: Process asessment
Stage 3: Project planning
Stage 4: Implementation and change management
Reasons
Process-oriented
Dynamic
Evolve
Reduce cost of poor quality
2. Visibility and Analysis
Process mapping
Identify the pattern
Control chart
Defect measurement
Finding root causes
Pareto diagram
Cause-and-effect diagram
Root cause analysis
3. Benchmarking
Competitive benchmarking
Best-in-class benchmarking
Process benchmarking
4. Continuous Improvement Method
Six sigma
Phase D: Define
Phase M: Measure
Phase A: Analysis
Phase I: Improve
Phase C: Control
JIT
Principles
Eliminate Waste
Eliminate Variability
Pull, don't push
Continuous improvement
Element
Supplier
JIT layout
Inventory reduction
Scheduling
Continuous job improvement
Lean
Objectives
House of Toyota
Operational stability
Leaving
Standard work
Kizen
Goals
Best quality
Lowest cost
Shortest lead time
Outer pillars
JIT
Takt time
Jidoka
Poka-yoke
In-station control
Core lean principles
Culture of continuous improvement
Respect for people
Additional lean consideration
Value stream mapping
Kaizen event/kaizen blitz
5 S
Sort
Simplify
Scrub
Standardize
Sustain
Setup time reduction
TPM
Waste area
Muda
Mura
Muri
Deadly wastes
Overproduction
Waiting
Transportation
Inappropriate process
Unnecessary inventories
Unnecessary motion
Defects
Unused people skills
TOC
5 Step
Step 1: Identify the constraint
Step 2: Exploit the constraint
Step 3: Subordinate other processes to the constraint
Step 4: Elevate the constraint
Step 5: Repeat the cycle
Drum/buffer/rope
5. Implementing improvements
Choose KPI and establish baselines
Have master plan and project plans
Communicate plans to all participants
Conducting a pilot to build confidence
Address change management issues
Monitor and adjust